As you may know the Returned Services League regularly has art union to normally win an expensive, beautiful house somewhere in Australia. However for the first time they are offering as the prize either a $1.4 million waterfront home on the Gold Coast or $1.4 million gold bullion. I'm liking this stack of gold. http://www.rslartunion.com.au/NextDraw Reading the details of taking the gold option as the win the FAQ state the $1.4m will be valued on the gold price of the day the prize is drawn ie 28th August 2013. http://www.rslartunion.com.au/NextDraw/GoldFAQ My question is what affect would a purchase of this amount on the 28th of August have on the gold spot price, if any at all?
Don't think it's the first time they've offered gold. A relative of mine used to buy tickets in those RSL comps 10-15 years ago and there was always the option of taking a bullion prize. Pretty sure the offer of bullion had something to do with Queensland lottery laws and how they treated cash winnings.
I support veterans and just purchased some tickets! They have some very nice prizes and its going to a great cause!
The good thing about these lotteries is you can pretend it's just you giving to charity I have a 1:119,000 chance of winning a Mater home every 2 months, but I doubt it will happen
Haha that is a lot of tickets. If you'd bought them all at once you probably would have had a one in ten chance lol. Or bought a cheaper house outright lol.
ive been entering rsl art union for 2 yrs now $30 every 6 weeks if i win great if not i feel goodish as im supporting our diggers. Id take the 1.4 million in gold
i have asked a few question is it 1.4 mil @ buy price or 1.4 mil @ sell price or 1.4 mil worth at spot or is it a fixed amount say 30kg worth about 1.4 mil Do you have to pay capital gains tax when u sell it or is it tax free like all other lottery wins
The win would be tax free if it meets lottery guidelines, bullion gets around GST also. If you sell the bullion after you win it, you would pay capital gains as on any investment if you make a profit. As for the price, I would think it would be bought from a dealer as everyone else does, so whatever price they could get it at for that amount depending on size bullion bars bought.
....and I have heard that the claimed $1.4 million value is very rarely the final sale price if you flog it. OC
Is that due just to the spread on the buy/sell OC? Or because of the quantity in 1 transaction if all sold togeather and bullion dealer smells blood in the water? Or the bullion is bought at inflated buy price to begin with? Maybe some hand washing involved? Trying to sell the house package would be the same I would think, it may be valuated at $1.4mil but actual sale price might be a fair amout off that.
Sorry, I was talking about the houses offered as 1st prize, not the gold equivalent. Read an article about auction prices of them, and they rarely came close to the claimed value. Our agent up on the coast agreed. OC
I agree with Old Codger, if you put the house on the market the next week you would not get 1.4 mill. I would take the gold (I wonder if you can request the size of the bars?). it works out to about 34Kg. I think I'd buy a new house with 0.5 million, 0.4 million stays as gold, covert 0.4 million to silver (wow, over half a ton in weight!, that's over 14,000 coins, I may have to reconsider) and 0.1 million to Platinum + Palladium.
